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4th quarter 2004-2005 Sales: €221 million

(up by 50% at constant exchange rates)

Montreuil - France, April, 28th 2005

FY 2004-2005: 17 million units sold under 8 major brands,

Operating cash flow* over 50 million

Faster growth at the end of the financial year

  • A record 4th quarter 2004-2005:

The new brand, Brothers In Arms Road to Hill 30TM, which has sold 1.7 million units, has made its mark as an undeniable reference for the historical shooter game segment, confirming its long-term potential. The new opus for the Tom Clancy's Splinter Cell® brand also saw a highly successful launch, with 2.5 million units sold. In addition, Ubisoft made major inroads into the new portable console segment with Asphalt Urban GTTM and Rayman 2005 on Nintendo DSTM, which sold a combined 740,000 units over the financial year.

Thanks to the strong performance of these products, Ubisoft was ranked the #3 independent publisher on consoles in the United States** for the month of March and in #5 for the first quarter as a whole. Over this period, the Group also placed 3rd among independent publishers in Germany and 2nd in the United Kingdom.

  • Sales 2004-2005: The success of the brand creation strategy

Over the fiscal year, Ubisoft generated sales of 537 million, amounting to 8% growth at a constant exchange rate. The Group continued to pursue its brand creation strategy, and now has a portfolio of eight major brands which have sold 17 million units, accounting for 65% of all business, including:

- 5.1 million units for the Tom Clancy's Splinter Cell® brand

- 3 million units for the Prince of Persia ® brand

- 2.8 million units for the Tom Clancy's Ghost Recon® brand

- 1.7 million units for the Brothers in Arms Road to Hill 30TM brand

Upward correction of the cash flow forecast for 2004-2005

  • Net free cash flow, excluding acquisitions, is now expected to exceed 50 million. This good performance stems from the generation of high cash flow from operations and continued control of the working capital requirement. Taking into account the acquisitions made during the year and increases in share capital, the net debt at 31 March 2005 should be around 82 million, compared to 119 million at 31 March 2004.
  • Additionally, the Group can confirm its expected annual results for 2004-2005:

- Earnings before interest and tax: 40-45 million according to French accounting standards and 38-43 million according to the pro-forma standard*

- Net income excluding exceptional items (before goodwill amortization and depreciation of business assets): 18-22 million according to French accounting standards and 17-21 million according to the pro-forma standard*

Medium-term prospects and targets for 2005-2006

  • Ubisoft is expecting two-digit organic growth over the next few years based on the following:

o Strengthening of its brand creation capacity through the recruitment of 600 new talents, expanding the production workforce to 2,900 by 31 March 2006.

o Strong entries into new segments. For example, during 2005-2006:

- The film licence segment with two of the most anticipated movies of the year

- The Sport segment with AND 1® Streetball [PlayStation®2/Xbox®]

- Stronger presence in the Strategy segment with Heroes of Might & Magic® V [PC]

o Expanding capacity on next generation consoles: 7 titles will be launched on Nintendo DSTM, 5 on Sony's PlayStation® Portable (PSPTM) and 4 on the new Microsoft console.

  • Targets for fiscal year 2005-2006

- First half 2005-2006: net sales around 155 million (more than 20% growth at constant exchange rates) including 42 million in the first quarter

- 12% increase in sales at constant exchange rates

- Operating income of over 55 million according to French accounting standards

- Net income excluding exceptional items (before goodwill amortization and depreciation of business assets) greater than 28 million under French accounting standards

- Net free cash flow excluding acquisitions in excess of 40 million

"Ubisoft has taken itself to a new level by generating high operating cash flow for the second year running while increasing its investments in production. The Group now has the capacity to quicken the pace of its investment and brand creation strategy, guaranteeing its growing profitability over the long term. The products for the new generation of consoles presented at the international videogame trade show (E3 - Los Angeles) will be a yardstick for the new stage we have now entered" declared Yves Guillemot, president and CEO of Ubisoft.

Consolidated sales

(in millions of euros)

FY 2004- 2005 FY 2003- 2004 Change - at constant exchange rates Change - at current exchange rates
First quarter 62 66 -6% -6%
Second quarter 68 62 +9% +8%
Third quarter 186 228 -16% -18%
Fourth quarter 221 152 +50% +45%
Full year 537 508 +8% +6%

Note: the financial year runs from April 1 to March 31.

*Net free cash flow is defined as the net cash flow from operating transactions minus investments related to the operating cycle (excluding financial investments and investments in external growth).

According to "pro forma" accounting standards, internal R&D expenses are posted as operating expenses.

**Germany: source: Gfk / United Kingdom: source: Chart Track / United States: source: NPD

The results for financial year 2004-2005 will be published and comments provided at the meeting to be held on 16 June 2005.

Disclaimer: This statement may contain financial data evaluated, information on future projects and transactions and future economic results/performance. Such valuations are provided for estimation purposes only. They are subject to market risks and uncertainties and may vary significantly with the actual results that shall be published. The financial data evaluated have been presented to the board of directors and have not been audited by the Auditors. [Additional information is specified in the last Ubisoft Background Paper filed on September 28, 2004 with the financial markets authority].

® 2005 Gearbox Software, LLC. All rights reserved. Published and distributed by Ubisoft Entertainment under license from Gearbox Software, LLC. Brothers In Arms Road to Hill 30 is a trademark of Gearbox Software and used under license. Ubisoft, Ubi.com, and the Ubisoft logo are trademarks of Ubisoft Entertainment in the U.S. and/or other countries. Gearbox Software and the Gearbox logo are registered trademarks of Gearbox Software, LLC.

® 2005 Ubisoft Entertainment. All Rights Reserved. Splinter Cell, Splinter Cell Pandora Tomorrow, Splinter Cell Chaos Theory, Sam Fisher, Ubisoft, and the Ubisoft logo are trademarks of Ubisoft Entertainment in the U.S. and/or other countries.

® 2004 Gameloft. All Rights Reserved. Gameloft, Gameloft logo and Asphalt: Urban GT are trademarks of Gameloft in the U.S. and/or other countries. Distributed by Ubisoft Entertainment. Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the U.S. and/or other countries. All other trademarks and registered trademarks are property of their respective owners.

® 1995-2005 Ubisoft Entertainment, All Rights Reserved. Ubisoft, the Ubisoft logo, Rayman and the character of Rayman are trademarks of Ubisoft Entertainment in the U.S. and/or other countries.

® 2003-2005 Ubisoft Entertainment. All Rights Reserved. Based on Prince of Persia® created by Jordan Mechner. Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the U.S. and/or other countries. Prince of Persia, Prince of Persia The Sands of Time and Prince of Persia Warrior Within are trademarks of Jordan Mechner in the US and/or other countries used under license by Ubisoft Entertainment.

® 2004 Red Storm Entertainment. All Rights Reserved. Ghost Recon, the Soldier Icon, Ubisoft, Ubi.com and the Ubisoft logo are trademarks of Ubisoft Entertainment in the US and/or other countries. Red Storm and the Red Storm logo are trademarks of Red Storm Entertainment in the US and/or other countries. Red Storm Entertainment, Inc. is a Ubisoft Entertainment company.

® 2005 Ubisoft Entertainment. All Rights Reserved. Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the U.S. and/or other countries. Universal Studios' King Kong movie ® Universal Studios. Licensed by Universal Studios Licensing LLLP. All Rights Reserved.

® 2006 Ubisoft Entertainment. All Rights Reserved. AND 1®, Mix Tape ®, are trademarks of AND 1. Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the US and/or other countries.

® 2005 Ubisoft Entertainment. All Rights Reserved. Heroes, Might and Magic, Heroes of Might and Magic, Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the U.S. and/or other countries. Developed by Nival Interactive

and "PlayStation 2" are registered trademarks of Sony Computer Entertainment Inc. All Rights Reserved.

Microsoft, Xbox, the Xbox Logos and Xbox Live are either registered trademarks or trademarks of Microsoft Corporation in the U.S. and/or in other countries.

NINTENDO, GAME BOY ADVANCE, NINTENDO GAMECUBE AND THE NINTENDO GAMECUBE LOGO ARE TRADEMARKS OF NINTENDO. ® 2005 Nintendo. The Nintendo DS logo is a trademark of Nintendo.

About Ubisoft:

Ubisoft is a leading producer, publisher and distributor of interactive entertainment products worldwide. It is the fastest growing company in the videogame industry and has grown considerably through its strong and diversified line-up of products and partnerships. Ubisoft has offices in 21 countries and sales in more than 50 countries around the globe. It is committed to delivering high-quality, cutting-edge videogame titles to consumers. Ubisoft generated revenue of 508 million for the 2003-2004 fiscal year, an increase of 22.5% over the previous fiscal year at constant exchange rates. To learn more, please visit www.ubisoftgroup.com.

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